[Federal Register: September 29, 2009 (Volume 74, Number 187)]
[Notices]               
[Page 49905]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29se09-87]                         


[[Page 49905]]

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SMALL BUSINESS ADMINISTRATION

 
Gulf Opportunity Pilot Loan Program (GO Loan Pilot)

AGENCY: U.S. Small Business Administration (SBA).

ACTION: Notice of extension of waiver of regulatory provisions.

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SUMMARY: This notice announces the extension of the ``Notice of waiver 
of regulatory provisions'' for SBA's GO Loan Pilot until September 30, 
2010. Due to the scope and magnitude of the devastation to 
Presidentially-declared disaster areas resulting from Hurricanes 
Katrina and Rita, the Agency is extending its full guaranty and 
streamlined and centralized loan processing available through the GO 
Loan Pilot to small businesses in the eligible parishes/counties 
through September 30, 2010.

DATES: The waiver of regulatory provisions published in the Federal 
Register on November 17, 2005, is extended under this Notice until 
September 30, 2010.

FOR FURTHER INFORMATION CONTACT: Gail Hepler, Office of Financial 
Assistance, U.S. Small Business Administration, 409 Third Street, SW., 
Washington, DC 20416; gail.hepler@sba.gov.

SUPPLEMENTARY INFORMATION: On November 8, 2005, SBA initiated the GO 
Loan Pilot program which was designed to provide expedited small 
business financial assistance to businesses located in those 
communities severely impacted by Hurricanes Katrina and Rita. Under 
this unique initiative, SBA provides its full (85%) guaranty and 
streamlined and centralized loan processing to all eligible lenders 
that agree to make expedited SBA 7(a) loans available to small 
businesses located in, locating to or re-locating in the parishes/
counties that have been Presidentially-declared as disaster areas 
resulting from Hurricanes Katrina and Rita, plus any contiguous 
parishes/counties.
    To maximize the effectiveness of the GO Loan Pilot, on November 17, 
2005, SBA published a notice in the Federal Register waiving for the GO 
Loan Pilot certain Agency regulations for the 7(a) Business Loan 
Program. (70 FR 69645). Because the pilot was designed as a temporary 
program scheduled to expire on September 30, 2006, and was extended to 
September 30, 2009, the waiver of certain Agency regulations also is 
due to expire on September 30, 2009. However, the Agency believes that 
there is a continuing, substantial need for the specific SBA assistance 
provided by this pilot in the affected areas.
    When compared to other similarly-sized Section 7(a) loans in the 
same States, the GO Loan portfolio is performing very well, at about 
one-half the rates of delinquency and loan purchase. In addition, the 
demand for GO Loans has significantly increased in FY2009 in response 
to the continued need to rebuild the Gulf Coast areas devastated by 
Hurricanes Katrina and Rita. The annualized disbursement of GO Loans 
approved in FY2009 was 21% higher than disbursements of GO Loans 
approved in FY2008. Furthermore, on August 24, 2009, the Federal 
Emergency Management Agency (FEMA) issued a news release announcing 
additional funding for projects throughout the New Orleans, LA area. 
These additional funds bring the total public assistance funds 
obligated for Louisiana recovery projects since January 20, 2009 to 
more than $1 billion. The extension of the GO Loan pilot program, 
combined with additional FEMA funding, form a continuing, comprehensive 
Federal response to support the recovery of these highly devastated 
communities.
    Thus, the Agency believes it is appropriate to extend this unique 
and vital program through September 30, 2010. Accordingly, the SBA is 
also extending its waiver of the Agency regulations identified in the 
Federal Register notice at 70 FR 69645 through September 30, 2010. 
SBA's waiver of these provisions is authorized by regulations. These 
waivers apply only to those loans approved under the GO Loan Pilot and 
will last only for the duration of the Pilot, which expires September 
30, 2010. As part of the GO Loan Pilot, these waivers apply only to 
those small businesses located in, locating to, or relocating in the 
parishes/counties that have been Presidentially-declared as disaster 
areas resulting from Hurricanes Katrina or Rita, plus any contiguous 
parishes/counties. A list of all eligible parishes/counties is located 
at http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_
goloan_3.pdf.

    Authority: 15 U.S.C. 636(a)(24); 13 CFR 120.3.

Eric R. Zarnikow,
Associate Administrator, Office of Capital Access.
[FR Doc. E9-23406 Filed 9-28-09; 8:45 am]

BILLING CODE 8025-01-P